Labour And The 10p Tax Rate

It's the arrogance of Gordon Brown and Ed Balls, over the 10p tax rate debate, that is astounding.

Brown is "furious" that protests about the decision overshadowed his US visit. Well, obviously, his visit to the US is more important than 5.3 million low-paid workers losing out as a result of his tax changes.

For his part, Balls says any protests against the change is "indulgent nonsense."

Polly Toynbee, The Guardian

Gordon Brown had a right choice and a wrong choice. He could take all 10p payers out of tax altogether, a move that would cost £7bn and cut everyone's tax a bit, with the lowest-paid gaining most.

Instead he used that £7bn to cut 2p off basic income tax, so the better-off gained. (Someone on £30,000 gains more from a 2p cut than someone on £15,000.)

Those 10p losers were victims of a deliberate choice to give more to the better-off.

Labour has never talked openly and honestly about tax. Shifty and apologetic, ministers use the language of the right - all taxes are a "burden", all redistribution disguised.

Under the shadow of Labour's tax system, the wall between haves and have-nothings grows higher. Shelter reports this week that first-time buyers now need 78% more money to get on the housing ladder than a decade ago. Only those with cash from parents stand a chance - and here Labour has widened the asset gap between the 70% home-owners and the 30% with nothing.